Fix Canada’s pension system by harmonizing retirement ages

I’ve often said that Canada’s three-pillar retirement income system serves today’s seniors rather well, especially those who used to have lower working income. The system is far from perfect, however, and one of its more glaring flaws involves the ages at which people can retire. I have yet to hear a cogent justification for why the eligible retirement ages differ so drastically from one pillar to the next. Consider the first pillar, which consists of old-age security and its income-tested companion, the guaranteed income supplement. The earliest the OAS pension can begin is age 65. A full pension requires 40 years of residency in Canada after the age of 18. If your taxable income is more than about $120,000, the government claw back the entire OAS pension.

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Article by Fred Vettese, chief actuary of Morneau Shepell.